Russell Investment, Ping An say ended China joint venture

 

SHANGHAI/HONG KONG Russell Investment Management and China’s Ping An Insurance Group said they have terminated their investment joint venture after four years, the latest sign of friction between foreign fund managers and their Chinese partners.

The joint venture, launched in March 2011, was managing $1.7 billion of investments on behalf of Chinese and foreign clients as of March 2015, according to information on the venture’s website and its LinkedIn profile.

Statements from the companies on Wednesday confirmed an earlier Reuters report of the breakup. Sources told Reuters that the relationship ended due to differences over investment strategy and risk culture.

“Going forward, Russell Investments and Ping An Group have mutually agreed to change the ownership structure of their joint venture company Ping An Russell Investment Management Shanghai Ltd,” Steve Claiborne, who handles public relations for Russell Investments in Seattle, wrote in an email to Reuters.

A source with knowledge of the situation said Russell was “quietly pulling out” of the partnership because it felt it had benefited Ping An more than Russell.